Commencement of Operations

Mercator Gold PLC
09 August 2007




                                MERCATOR GOLD PLC
                       ('Mercator Gold' or the 'Company')

LONDON, UK - 9 August 2007 - Mercator Gold PLC is pleased to announce that
mining and treatment of gold bearing ores has recommenced at its wholly owned
Meekatharra gold complex.

Commissioning of the 1.25 million to 3 million tonne per annum Bluebird Mill
commenced during the second week of July and is expected to be completed by the
end of September 2007.

Gold production should commence during the month of August 2007.

In its first full year of operation, commencing 1 October 2007, the Company
expects to produce 120,000 ounces of gold. Some minor delays have been
experienced during the initial phase of commissioning as is normal during the
course of bringing a mine of this scale back into production however the
progress to date has been relatively smooth.

Cost pressures experienced globally and throughout the industry preclude the
Company from advising on likely costs of production until the end of the
commissioning phase.

Initial production will come from the Surprise Open Pit which has an announced
reserve of:

Surprise               827,000 tonnes             @ 2.35g/t       63,000 ounces

Production will follow from the Bluebird Pit where the announced reserve is:

Bluebird             1,461,000 tonnes           @ 2.53g/t        119,000 ounces

Further production from Prohibition-Vivian-Consols (PVC) and other deposits will
then provide plant feed for the balance of the first four years of operations.
The announced reserves at PVC are:

Prohibition          1,372,000 tonnes            @ 4.06g/t        179,000 ounces
                      
Vivian - Consols     233,000 tonnes              @ 9.54g/t         71,000 ounces

During the commissioning phase two geotechnical holes drilled from surface at
Surprise returned the following intersections from below the current planned pit
level.
        ----------        -----------          --------              ---------
        Hole Number          From                 To                  Au Grade
                           (metres)            (metres)              (gms/tonne)
        ----------       -----------           --------               ---------
         07sud001            170                 171                     16.27
        ----------       -----------           --------               ----------
                               171                172                     0.03
        ----------       -----------           --------               ----------
                               172                173                    14.07
        ----------       -----------           --------               ----------
                               173                174                     0.57
        ----------       -----------           --------               ----------
                               174                175                     5.20
        ----------       -----------           --------               ----------
                               175                176                   161.94
        ----------       -----------           --------               ----------
         07sud002              175                176                    33.93
        ----------       -----------           --------               ----------
                               176                177                     0.35
        ----------       -----------           --------               ----------
                               177                178                     0.96
        ----------       -----------           --------               ----------
                               178                179                     8.71
        ----------       -----------           --------               ----------

Note: Holes were drilled at 58 degrees.

These results highlight the presence of very high grade, but nonetheless
nuggety, gold at Surprise and add considerably to the Company's confidence in
the orebody. An extension of the Surprise Pit is under consideration.

Managing Director, Patrick Harford said: 'Our people in Meekatharra and Perth
are very excited about the reopening of the Bluebird Mill and the commencement
of mining operations at Surprise.

The Company's whole team is focused on controlling costs and maximising recovery
so that we extract the maximum benefits for our shareholders from this golden
opportunity.'

Chief Operating Officer, Denis Geldard added: 'We will have two open pits within
1,000 meters of the run of mine stockpile, which will provide feedstock for the
next two years of operation, followed by extensive underground reserves which
are still being updated as design work proceeds. We have a state of art
refurbished processing plant and an experienced team of people in place which,
together with a portfolio of brown fields' and green fields' exploration
targets, places Mercator Gold in a very commanding position going forward.'


Competent Persons Report - Consent for release

The information in this report, which relates to the Surprise, Bluebird,
Prohibition, and Vivian-Consols Ore Reserves, is based on information compiled
by Alan Coles and Denis Geldard.

Alan Coles and Denis Geldard are full time employees of Mercator Gold Australia
Pty Ltd and are Members of the Australasian Institute of Mining and Metallurgy.

Alan Coles and Denis Geldard have sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which they are undertaking to qualify as Competent Persons as defined
in the 2004 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'.

Alan Coles and Denis Geldard consent to the inclusion in the report of the
matters based on this information in the form and context in which it appears.


For further information please contact:

Mercator Gold plc
Terry Strapp, 
Chairman 
Tel:                                     [phone]
Patrick Harford
Managing Director 
Tel:                                     [phone]
Mobile:                                  [phone]
Email: [e-mail]
Website: www.mercatorgold.com


Bankside Consultants Ltd 
Simon Rothschild
Keith Irons
Oliver Winters
Tel:                                     [phone]


AIM: MCR



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